Senate leaders should take action to approve a tax treaty with Chile, Treasury Secretary Janet Yellen has urged.
The treaty would reduce barriers to trade and help US companies compete with those based in other countries that already have treaties with Chile, Yellen wrote to Majority Leader Chuck Schumer (D-N.Y.) and Minority Leader Mitch McConnell (R-Ky.) in letters made public Tuesday.
Treasury believes the Senate should move on the treaty by the end of the year, a department spokesperson said.
- The treaty is waiting on approval by the full Senate after it was voted out by the Foreign Relations Committee in March.
- It would be just the second income tax treaty the US has in South America, Treasury said. After years of opposition from Sen. Rand Paul (R-Ky.), the Senate in 2019 approved protocols to amend treaties with Japan, Luxembourg, Spain, and Switzerland.
- Bilateral income tax treaties encourage cross-border investment by helping companies avoid being taxed twice on the same income, creating a framework to resolve tax disputes between companies and governments, and offering lower withholding rates.